Non-dischargeable Debts

At the moment of your bankruptcy discharge, you are free from your unsecured debts. However, there are some exceptions when it comes to the discharge of debts, and they are as follows:

  • some debts are non-dischargeable in a bankruptcy;
  • the bankruptcy court can, under certain circumstances, deny a discharge to a debtor

Debts that cannot be discharged in a bankruptcy

The debts that are discharged and the debts that are not are different within both Chapter 7 bankruptcies and Chapter 13 bankruptcies.

In a Chapter 7 bankruptcy, certain types of debts are always non-dischargeable. These include but are not limited to:

  • certain taxes,
  • spousal/child support debts,
  • fines and penalty debts to government agencies,
  • student loans (with few exceptions),
  • debts for personal injury caused by intoxicated driving,
  • attorney fees for child/spousal support cases, and
  • court fines and penalties.

Atop of the non-dischargeable debts within a Chapter 7 bankruptcy, Chapter 13 bankruptcies also include a few more:

  • debts arising from willful or malicious actions,
  • debts or creditors that you do not list, and
  • fraudulent debts

Court’s denial of discharge

Within a Chapter 7 bankruptcy, there are various barriers to discharging your debts. The Court may deny you a discharge if you fail to follow bankruptcy procedures and Court rules. In these cases, the Court may also deny your Chapter 7 petition in whole, meaning that you cannot be discharged from regularly dischargeable debts. The Court can deny you a discharge if you:

  • do not provide the required tax documents;
  • do not complete a course on personal financial management;
  • transfer or hide property to defraud your creditors;
  • destroy or hide books or records;
  • commit perjury or other fraudulent acts within your bankruptcy case;
  • cannot account for lost assets;
  • violate a court order; or,
  • have previously filed for bankruptcy and were granted a discharge.